"None of this should be cause for celebration, because a world without American leadership is a more dangerous place. The U.S. is still the world's largest economy, the issuer of its reserve currency, and its lone military superpower. No other nation has the will or capacity to lead the way the U.S. has for 70 years, so faltering American influence will produce a vacuum in which every nation can seek narrow advantage.
If Mr. Obama wants to restore his economic leadership, both at home and abroad, he needs an urgent shift in priorities. [emphasis added] Strike a deal with Republicans to extend the current tax rates across the board, pursue the spending cuts proposed by his own deficit commission, end the regulatory binge that has constrained America's animal spirits, stop trying to direct capital toward political mirages like 'green jobs,' and press Congress to pass the Korean and other trade pacts.
The world will follow American leadership again only when it sees policies that restore robust U.S. economic growth."
November 15, 2010
Given the U.S. slapdown at Seoul's G-20 meeting, it's pretty clear that TeamObama's policies have been soundly rejected. Both TeamObama's political and economic calculus seem to be failing.
What will be his reaction to the Deficit Reduction Commission's recommendations? We'll know soon when the final report is released on December 1, 2010. Regaining economic vitality is impossible without a resurgence in confidence by Americans. TeamObama and Congress must show that they understand and will act on reducing the size of the deficits and debt, rather than embrace the ridiculous spending surge, as an essential step in restoring that confidence.
The WSJ piece concludes: